Metals : Gold Falls After U.S. Employment Report
By Ira Iosebashvili
Gold prices fell Friday, after a stronger-than-expected U.S. employment report revived expectations of another Federal Reserve rate increase this year.
Gold for December delivery was recently down 0.6% at $1,267.60 a troy ounce on the Comex division of the New York Mercantile Exchange.
Nonfarm payrolls rose by a seasonally adjusted 209,000 in July from the prior month, the Labor Department said Friday. The unemployment rate ticked down to 4.3% from 4.4% the prior month as more people joined the workforce. Economists surveyed by The Wall Street Journal had expected 180,000 new jobs and a 4.3% unemployment rate last month.
July's strong number likely forced some investors to take profits on recent gains in the metal, said Peter Hug, director of metal sales at Kitco Metals.
Gold prices are up around 7% this year, lifted in part by expectations that the Fed will take a gradual path toward tightening monetary policy. Higher rates tend to weigh on gold, which struggles to compete with yield-bearing investments when borrowing costs rise.
Mr. Hug, however, believes the central bank is unlikely to move until it sees evidence of inflation returning to the economy.
In base metals, September copper rose 0.4% to $2.8880 a pound.
Write to Ira Iosebashvili at firstname.lastname@example.org